Above all, is it worth it in the long run?
You see the astronomical gains that people have made over the years from BTC, ETC, XRP… (insert coin/token here).
The crypto market’s bullish once again. Maybe, just maybe, there will be another chance to buy that gem that will do a solid 30, 50 and perhaps an elusive 100x during the next bull run.
So, you decide to go all in (or allocate any major % of your income/net worth) for a while, and eventually, it all gets quite addictive.
Before continuing, I do not recommend this, particularly if you are highly dependent on crypto to make it or break it in life, but each to their own.
However, let’s play devil’s advocate here. Let’s say there’s a moderate-to-high probability that this will set you up nicely for the rest of your life.
How much would you be willing to sacrifice? Moreover, will it be worth it in the end?
We will return to these questions shortly.
Human after all
Let’s face it, 99% of us (an arbitrary number) have at least one vice. This can become an obsession for certain people and lead to nasty addictions.
When it comes to investing, people (i.e., adults) are definitely wetting themselves over certain asset classes.
In Australia, especially in Sydney and Melbourne, if it’s not crypto, it’s real estate.
What’s my point? Many people are obsessed with some product, tangible or otherwise.
Crypto, real estate, trading cards, gambling, NFTs, Belle Delphine’s bath water (how time flies)… the list goes on.
We all have vices, and if people consider Bitcoin and certain altcoins to (still) be gambling, then so be it.
There’s something that my mum told me which has stuck with me:
“I don’t smoke; don’t drink; don’t do…substances; barely go out; live a frugal life and have saved money, so I like to play the lottery.”
Following a similar logic, I have chosen to forego many luxuries and buy a small amount of crypto every week or two, even though it has annoyed friends and family members.
Is it all worth it?
Yes, in the majority of cases.
For someone to become rich, generally speaking, they or a family member gave up many things on their behalf to reach that point.
As part of this, I also consider risk-taking a sacrifice; you are opting for less safety on investments now with the future expectation of generating a strong ROI, crypto or otherwise.
You know the old age: No risk, no reward.
When it comes to BTC, ETH and other blue-chip crypto assets, to paraphrase this gentleman…
“If you don’t mess around, you’ll never find out.”
this is my favorite clip on the internet pic.twitter.com/r7qBEYDzkC
— anna melissa 🏀✨ (@annamelissa) September 28, 2022
Of course, this could go both ways, so think before you act.
Having said this, I still believe in some balance. Life is not just about making money; I am not saying you should ostracise yourself from others and live like a hermit. Additionally, we still need to exercise, get adequate sleep, eat reasonably well and regularly interact with people face-to-face.
Nonetheless, take some risk, make sacrifices, get skin in the game with certain investments (yes, crypto included, particularly the blue-chip assets) and have a crack.
This might be perceived as a reckless move, but in recent years I have gradually distanced myself from people who have mocked me because of my beliefs about Bitcoin, let alone crypto in general and what it all represents.
I also recognise that I am still young, single, and have no kids (yet), so I can take more risks than the average person with more (“significant”) commitments.
I have ignored many people who refuse even to consider the merits of Bitcoin and even a few altcoins: Decentralised money with a hard-capped supply that runs on an immutable, open blockchain; dirt-cheap and super-fast remittances; smart-contract functionality, etc.
Those who perceive all of this to be a scam without giving solid counterarguments are not worth my time. I have also done this to family members and stand by my take-no-prisoners approach.
Am I obsessed? Yes, nowadays I am, perhaps to a certain point. I know this is ironic, considering what I mentioned earlier. However, I believe it is worth it, at least doing so for a few years.
What indicates that I am? One thing that stands out is that I tell myself if I avoid spending X number of dollars and put it into BTC, ETH, XRP, ADA now, how much crypto could I buy, and what would it be worth in AUD (or USD) in 2025 or even 2030?
In other words, if I don’t make a good effort now — especially to make up for lost time — then I will never know what I could have earned through crypto investing.
P.S. What’s my other “mania”? Italian food, though I do eat Domino’s from time to time. Once again, we all have our vices…
P.P.S. On a serious note, if you want to address an addiction, I strongly recommend speaking to a qualified person in this space. Free and subsidised options are also available to help you deal with it before things spiral out of control.
- N.B. None of this is financial advice; I am not a financial advisor. You are solely responsible for crypto investments, let alone in any asset class.
- The opinions expressed within this piece are my own and might not reflect those behind any news outlet, person, organisation, or otherwise listed here.
- Please do your research before investing in any crypto assets, staking, NFTs and other product affiliated with this space.
- For transparency, Bitcoin (BTC) represents about 25% of my crypto portfolio.